Qld’s housing crisis exacerbated by fewer people per household

A seemingly tiny shift in the composition of Queensland households has added to the state’s housing crunch.

Since 2015, the average number of people per household across Queensland has fallen from 2.6 to 2.5. With the population of 5.3 million spread thinner, 77,000 extra homes are needed to house the same number of people.

Uncertainty remains in the south-east Queensland housing market as the state heads towards the 2032 Olympics.Credit: Glenn Hunt

This analysis from Queensland Treasury, presented to about 40 people from across government, the private and community sectors during follow-up housing talks on Tuesday, highlights the depth of the issue facing those trying to chart a path out of record housing prices and availability pressures.

Based on unpublished Australian Bureau of Statistics data and a new method to better track the composition of households in real time with the Reserve Bank, the analysis shows the spreading of the state’s population across more homes has effectively undone more than two years of typical construction efforts.

This comes alongside continued growth in both population and the proportion of Queenslanders renting, uncertainty about the role of Airbnb-style leasing, and what various reports have described as a decade-long lack of focus from governments on social and affordable housing.

But finding solutions to address the housing problem facing the country and Queensland, which has seen the highest rent inflation and homelessness growth of all Australian jurisdictions, remains a political minefield for the state government.

All stakeholders agree that more social, affordable and homes in general are needed. But renter advocacy and social service groups are also calling for better security for tenants by banning the end of a fixed-term lease as a reason to end a tenancy, and by capping rent increases near inflation.

After walking back suggestions, amid fierce backlash, that the government would do the latter, Premier Annastacia Palaszczuk announced on Tuesday it would instead move to limit the frequency of rent increases to once a year.

“The great majority of landlords do the right thing and look after their tenants, but for those who do not, this is a wake-up call,” she said.

South Brisbane Greens MP Amy MacMahon labelled Palaszczuk’s announcement a “slap in the face” for renters. She also made a failed attempt in parliament to force debate of her bill calling for a two-year rent freeze.

In a paper prepared for the meeting, Tenants Queensland noted that while renters had some formal avenues for disputing rent increases, these were rarely used. One household had recently sought advice about an increase of 91.5 per cent – from $260 to $500 a week.

The government has also made announcements around increased rental and bond support payments. On the supply side, it will provide a range of tax breaks for developers proposing build-to-rent projects in which at least 10 per cent of the units are deemed affordable.

Recent calls for changes to stamp duty and land tax have been ruled out by Treasurer Cameron Dick.